Shopify Crashes On First Revenue Miss In Four Years, Wells Fargo Warns AI Costs Hitting Margins

Shopify Crashes On First Revenue Miss In Four Years, Wells Fargo Warns AI Costs Hitting Margins Shopify shares crashed in premarket trading in New York after the first sales miss since 2022. Investors focused on subscription revenue that fell short of the Bloomberg Consensus estimate, and Wells Fargo analysts pointed to gross margin headwinds due to AI. Third quarter revenue rose 32% to $3.74 billion, falling just short of the consensus estimate of $3.75 billion. Subscription Solutions revenue missed, while Merchant Solutions, its largest business, was roughly in line. Gross merchandise volume also missed estimates.Here's a snapshot of 3Q earnings:Revenue $3.74 billion, estimate $3.75 billion (Bloomberg Consensus)Monthly...

Read the full article at the source.